The suit claims that Ford's placement of the thick film ignition (TFI) module -- which regulates electric current to the spark plugs in 300 models sold between 1983 and 1995 -- was too close to the engine block, where it was exposed to high temperatures that caused the module to malfunction and the vehicles to stall.

Ford says the ignition devices are not defective but has nevertheless settled hundreds of wrongful death, injury and other lawsuits in connection to allegations of Ford vehicles stalling, the Reuters story said.

Ford's offer was presented to Alameda [California] County Superior Court Judge Michael Ballachey, who had been ready to begin a new jury trial in the case.

"We've had discussions on the progress of settlement talks and those talks are ongoing," Ballachey said after a private meeting with lawyers for both sides, Reuters reported.

Ford said it was premature to discuss the final cost of the proposed settlement, although it could cover millions of vehicles in California and at least four other states.

Ford issued a statement saying "the cost of $750 million to $1 billion currently being speculated about in the media are substantially overstated."